Fifty-seven percent expect to be using a subscription-based SaaS or hybrid system by 2023. The findings were published as a port of the report 2021 ISG Survey on Industry Trends in HR Technology and Service Delivery. The reason for the rapid change is the obvious one—the impact of the COVID-19 pandemic, “In 2020, the COVID-19 pandemic changed work in unimaginable ways and put increased focus on the potential of HR SaaS technologies to better engage employees, support a virtual workforce, improve productivity and enable a more agile HR model,” according to study co-author Stacey Cadigan, a partner in ISG HR Technology, The survey also found companies are reporting significant benefits from the move to the cloud with 64 percent saying they have achieved “measurable business value from their investment in HR SaaS platforms”, compared to 50 percent in 2019. ISG says business value is determined by a range of metrics such as productivity, cost savings and employee retention. Cost savings of 10 percent or more were noted by 70-percent of participants with 37 percent saying they had savings of 20 percent or more. The study also found a clear migration to outsourcing HR systems since the 207 and 2019 report. Not surprisingly, the move towards having employees work from home is expected to continue. Seven out of 10 of responding organizations expect 20 percent or more of their employees will work from home from 2022 and beyond. The overall expectation of the group is that between 20 and 40 percent of employees will work from home.
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SURVEY: HR CLOUD ADOPTION RAPID Featured
Companies are adopting HR SaaS systems at a rapid rate, according to a study by the Information Services. Group. A survey of 260 companies found that 46 percent of respondents have moved to the cloud or hybrid platform, compared from 20 percent two years ago.